Lucara Diamond announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets under which the underwriters have agreed to buy on bought deal basis 29,400,000common at a price of C$0.75 per Common Share for gross proceeds of approximately C$22 million.
The company has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Public Offering, to purchase up to an additional 15 percent of the Public Offering to cover over-allotments, if any. The offering is expected to close on or about July 15, 2021 and is subject to Lucara receiving all necessary regulatory approvals.
The Company also announced that it has agreed to launch a concurrent private placement of approximately C$16 million on the same terms as the Public Offering (the “Private Placement” and together with the Public Offering, the “Financing”) to Nemesia S.à.r.l. (Nemesia) and to certain other investors on a private placement basis. Any Common Shares issued pursuant to the Private Placement will be subject to a statutory hold period in Canada for a period of 4 months and one day. The Private Placement is expected to close on or about July 15, 2021 and is subject to Lucara receiving all necessary regulatory approvals.
The net proceeds of the Public Offering and Private Placement will be used for working capital to support the development and ongoing operation of the Karowe diamond mine.
